Nicaragua Gets New Pilot Loan Program

Posted by Adam McGeehan on Dec 2, 2015 9:20:52 AM

Investing in Nicaragua is looking better all the time. The Nicaraguan economy has been growing by leaps and bounds in recent years. Since 2010, the GDP of Nicaragua has grown an average of 4.65% per year, far surpassing the average GDP growth of 2.15% for the United States during that same time. Much of this growth is spurred by foreign investment. This investment can come in many forms, shapes and sizes. One form may be a company opening up doors inside the country of Nicaragua. Another form may be a foreign company providing capital for Nicaraguan businesses. This is exactly what is happening with a new pilot loan program being introduced to Nicaragua.

Arrow Global, a company based out of Norman, Oklahoma is starting to offer pilot loans to Nicaraguan entrepreneurs. This will aid in the growth of Nicaragua's economy, and is essential for a market like that of Nicaragua, which is rich in human capital, but in need of more financial capital. These two conditions are why foreigners are investing in Nicaragua more and more.

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Pilot loans are a necessary part of a diverse and growing economy. They work to fill a gap that often goes unnoticed in rapidly developing economies. Think of pilot loans as the “middle class” of loans. Nicaragua has many banks which are capable of giving loans for large projects. They also have a healthy microloans section, which deals specifically with very small loans. But what about those in the middle? What about the entrepreneur who needs a sizable, but not massive, loan to start or expand their business? That size loan would be too large for a microloan, but not large enough for a bank to bother with loaning the money out. With the new pilot loan program, these mid-size loans will be made available to those in need of them, allowing Nicaragua’s economy to grow not only on the massive, macro level and the grass-roots, micro level, but in the middle as well, fueling and strengthening the Nicaraguan middle class.

The introduction of pilot loans to Nicaraguan entrepreneurs is emblematic of a larger movement of foreigners investing in Nicaragua. Nicaragua is an excellent country to invest in. With its low cost of labor, foreigner-friendly government, and more than impressive economic growth, it’s no wonder why so many foreigners are investing in Nicaragua.

Adam McGeehan

Written by Adam McGeehan

Adam is a recent graduate of Allegheny College. There he majored in Economics with a minor in Spanish. He has always been interested in traveling abroad and is thrilled to have recently taken up residence in Managua, Nicaragua to work as an intern for ECI Development. He is excited to take in all of the culture of this wondrous nation.

Topics: Investing in Nicaragua